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Nifty

Nifty saw yet another Doji formation on its daily scale with signs of profit booking near its life high zone. Occurrence of consecutive‘Doji’ candlestick formations indicates indecisiveness & lack of confidence near life high zone. But it is still holding its close above the highimpacttrading candle zone of 04th June’24 with its high around 23180 which is a sign of hope for gradual up move to continue. This level nowservesasan ideal level to gauge sustenance of ongoing bullish momentum. Cool off in event volatility is evident as India VIX continues tostabilizeitsmovement below 18 level. Both its relative strength indicators are diverging with ADX slipping below its 25 level; indicating lack of conviction.Weekly options data indicates confident writing base at 23000 while its upper bound holds firm at 23500 followed by 23800 for this week. Sustenance above 23350 would serve as a reassuring sign for trend momentum to continue which could push the index higher towards23900.Traders may continue to add longs on decline & may chase breakout moves once above 23560 towards 23900.

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